News

Money made easy, your five minute guide to...

PERMANENT TSB is buying the deposit book of Northern Rock, which sparked panic
four years ago when savers caused a run on the bank. The exodus reduced the
number of customers to 17,000 with average savings of about €38,000 each.
The plan is to transfer their accounts to Permanent TSB by the end of the
year. We explain what it means.

IS IT GOOD NEWS?
Permanent TSB offers more choice than Northern Rock, which has a narrow range
of savings accounts. The exit of another bank is bad for competition,
though, following the disappearance of Anglo Irish Bank, Irish Nationwide,
Halifax and Postbank in the past year.

The biggest worry for Northern Rock customers will be the security of their
savings. They are currently covered by the UK deposit protection scheme, but
will move to Ireland’s deposit guarantee when Permanent TSB takes control.